Set For Another Rally Today, Or Are We Setting Up To Fall?

March 26th, 2009

Here we are bearz. Looking at the pre-market futures up again. Just seems like a bad dream. Before we get too sad and jump ship on our shorts let’s recap the week. Monday – gap up and huge rally all day. Tuesday – gap down, rallied to fill the gap and test the highs, sell off and close at the lows. Wednesday – gap up, rally to a new high, huge sell off followed by solid buying that recaptures about two-thirds of the sell off. Thursday – as of an hour before the open, we’ll get a big gap up that puts us right near yesterday’s highs. I think I smell the beginning of the end – again at least short term. Even with better than expected GDP numbers, we have to consider how far we have come.

 

All in all these types of weeks I must remain patient and calm. I would rather wait for the right trades than to try and make little trades all day. Some people still don’t get this! Listen, low prices are brought up so the pros – like me – can sell them down…then they’re brought up again to offer an opportunity to sell short….then they’re brought down to allow them to cover…and then brought down a little further so they can buy. Members and I were in at the bottom floor so you had better believe we are going to be in during the fall.

 

REMINDER: Trading is more about patience and letting positions mature than anything else! Before I get too mad to all the people emailing looking for a $1 million overnight trade, here are the new S&P targets.

 

spx

  • Share/Bookmark

Comments are closed.